Let's predict the future

12 Replies

G'day guys,

I'm going out on a limb.

Maybe one day you can say that you heard it here first.

I'll start by saying that the world is moving at a very rapid pace with all kinds of crazy technologies coming out.

Virtual reality, augmented reality and artificial intelligence are just a few.

I don't even want to go into robotics.

The sad reality is that human beings are slowly becoming extinct.

Here is my prediction on the future of real estate.

Get ready, be prepared and be willing to adapt to change.

If you don't, you will loose.

The 3 Big Coming Changes In Real Estate


1) Brokerages will become extinct (5-10 years)

The sentiment toward brokers by their very own real realtors as at all time lows. Agents don't want commission splits and brokers are taking their agents for granted. Although NAR still has a tight grip on things, I see a company/companies lobbying to change legislation and remove brokerages completely out of the picture


2) Title companies will go out of business (5-10 years)

The whole cryptocurrency fiasco is the biggest bubble waiting to happen. But just like during the Dotcom bust. There where a few survivors with the likes of Amazon and Ebay who are still thriving to this day. I also believe this to be the same case with cryptocurrencies. The blockchain technology on the other hand is sound and will keep everyone honest, thus completely eliminating a need for title companies. All real estate transactions will be done virtually and with a few swift moves. A new currency will also coe into play. It doesn't matter if it's Bitcoin or whoever else survives the inevitable crash.


3) Realtors will become obsolete (20+ years)

Although I don't see this happening anytime soon as I still believe that human interaction is crucial to folks looking to make the most important decision of their lives (Buying or selling a house). "People will still buy People" and no matter how hard Zillow tried to change this, our time has proved that it's not ripe for change. There are many other tech start ups trying the same as Zillow and succeeding on a micro market scale. It's only a matter of time before one these hits it big and all of a sudden we have 1 national platform which the average "mum and dad" trust and go online to list and sell their property. While the buyers are also doing the same. For the time being tho, I think real estate agents are safe.

Call me crazy with the above but I'm sure they where saying the same thing about those speculating with Marijuana back in the day.

I'd love your thoughts so please comment below.

Do you see any revolutionary changes happening in the real estate world over the next 5-10 or 20+ years?

Thanks for reading and I'm looking forward to your comments

Marijuana is a solid good that is extremely enjoyable to do for many people just like alcohol is. It is also social. I don't think that's the best example.

Is there any evidence of these things happening currently? Maybe we can identify a beginning trend of exponential growth.

Originally posted by @Cody Evans :

Marijuana is a solid good that is extremely enjoyable to do for many people just like alcohol is. It is also social. I don't think that's the best example.

Is there any evidence of these things happening currently? Maybe we can identify a beginning trend of exponential growth.

Marijuana is still illegal tho in many states, right?

The 3 things i mentioned are either illegal or unimaginable in todays day and age.

Just like the legalization of marijuana was back in those days.

All three of these titles may go extinct, but I predict you will still need the same amount of PEOPLE to get business done.

Call it what you want, or whatever infrastructure changes there will be, it'll still be a people game.

Also, while you say obsolete, I simply see it as the people who don't want to deal with these steps won't have to, but for those people who want their hand to be held, or to look something in the face when they are trying to figure out these procedures there will still be plenty of options for them to do so.

Best I think will happen is there will be more options to go around this stuff for those that don't want to. Brokerages and title companies EXTINCT in 5 years? I'm sure Fidelity would be skeptical LOL

Originally posted by @Alexander Felice :

All three of these titles may go extinct, but I predict you will still need the same amount of PEOPLE to get business done.

Call it what you want, or whatever infrastructure changes there will be, it'll still be a people game.

Also, while you say obsolete, I simply see it as the people who don't want to deal with these steps won't have to, but for those people who want their hand to be held, or to look something in the face when they are trying to figure out these procedures there will still be plenty of options for them to do so.

Best I think will happen is there will be more options to go around this stuff for those that don't want to. Brokerages and title companies EXTINCT in 5 years? I'm sure Fidelity would be skeptical LOL

Thanks for your comment Alexander,

Good tech eliminates people

It sucks but it's true.

Everyone is looking at their bottom line these days and usually the bottom line is mostly affected by labor costs

Fidelity, NAR, etc...

Doesn't really matter.

They all pull strings now but I don't think they will have a say in the future

Look at the crypto world for example.

Even governments have started implementing their own versions as they have no choice. They can't shut it down.

The future lies in the hands of the masses and what they want to do.

1) Agents complain about brokers

2) Consumers complain about agents

3) And everyone complains about title companies lol

In my opinion, it's only a matter of time before they all slowly fade away

Thanks again 

Tech eliminates people in one area, but usually creates more people for another. (emphasis on usually)

and I agree that in a matter of time they will fade away, agree completely, but you said 5-10 years and I think that's incredibly optimistic. We still cant' even buy cars without a dealership involved, and there is no end in sight for that. The entire mortgage broker industry evaporating in even less time is unlikely.  

@Engelo Rumora Speaking on the topic of title company, the industry has been outdated for 25 years. The service of a title company will never disappear. It is insurance after all and everyone likes to sleep soundly from the boogeyman. The need for a brick and mortar title company has already gone extinct. Several states accept digital notary services via webcam, recording via electronic document services and funding via wire transfers. I can conduct my entire business from a computer in pajamas. In the state of Indiana I perform closings without ever seeing the buyer or seller. Even with all this capability, what may never expire is the need for customer service in business and the guidance in an unfamiliar time such as buying your first home or buying your forever home. 

Originally posted by @Dustin Haviland :

@Engelo Rumora Speaking on the topic of title company, the industry has been outdated for 25 years. The service of a title company will never disappear. It is insurance after all and everyone likes to sleep soundly from the boogeyman. The need for a brick and mortar title company has already gone extinct. Several states accept digital notary services via webcam, recording via electronic document services and funding via wire transfers. I can conduct my entire business from a computer in pajamas. In the state of Indiana I perform closings without ever seeing the buyer or seller. Even with all this capability, what may never expire is the need for customer service in business and the guidance in an unfamiliar time such as buying your first home or buying your forever home. 

Blockchain tech could disrupt that for good.

It's such an honest system that there won't be a need for hand holding buyers, sellers, agents or brokers once folks actually start to understand how it works.

Same here.

I love doing deals in my undies but there is one problem tho.

The title company charges me a fortune on the hundreds of deals we do yearly and the bank charges me wiring fee's also.

All of that is gone through blockchain.

Not just that but what usually takes 7-10 days to do (Pull title, coordinate closing, sign docs, etc...)

Could potentially be done in a matter of days if not hours.

Thanks

I agree that blockchain should put title companies out of business. Realtors will never go away, however, the industry has already seen a steady decline in full service agents as people are very comfortable navigating their home search on their own online. For investing though, I think realtors will remain extremely valuable in the grand scheme of things.

Originally posted by @Rob Beardsley :

I agree that blockchain should put title companies out of business. Realtors will never go away, however, the industry has already seen a steady decline in full service agents as people are very comfortable navigating their home search on their own online. For investing though, I think realtors will remain extremely valuable in the grand scheme of things.

Disagree.

Sounds like Blockchain could be a threat to Title Searchers/Abstractors rather than title companies.

In my opinion applications built on blockchain will have the greatest impact and also the tasks of a Realtor will change greatly (as did the internet). Generally many jobs will disappear and some will be new jobs due to many technologies...

Internet of Things (IoT)

Virtual reality

Augmented reality

Drones

Big Data

3D printing

Robotization

Artificial Intelligence (AI) and

Machine Learning

Blockchain

Data Virtualization

and we will all work in smart cities, smart buildings, and deal with home automation...get ready!

Originally posted by @Erik Noordam :

In my opinion applications built on blockchain will have the greatest impact and also the tasks of a Realtor will change greatly (as did the internet). Generally many jobs will disappear and some will be new jobs due to many technologies...

Internet of Things (IoT)

Virtual reality

Augmented reality

Drones

Big Data

3D printing

Robotization

Artificial Intelligence (AI) and

Machine Learning

Blockchain

Data Virtualization

and we will all work in smart cities, smart buildings, and deal with home automation...get ready!

Yes and Yes Erik,

Big changes are coming and folks need to realize them.

In my opinion everyone should start experimenting or at the very least educating themselves as much as possible 

"Adapt or fail" lol

Originally posted by @Tom Gimer :
Originally posted by @Rob Beardsley:

I agree that blockchain should put title companies out of business. Realtors will never go away, however, the industry has already seen a steady decline in full service agents as people are very comfortable navigating their home search on their own online. For investing though, I think realtors will remain extremely valuable in the grand scheme of things.

Disagree.

Sounds like Blockchain could be a threat to Title Searchers/Abstractors rather than title companies.

And title companies IMO.

It's "coming" after all of us hehe

Start looking into it mate and you can always transition your business into whatever the times are doing.

We have started looking into how to sell our properties in crypto money but not to be affected by it's high volatility

Much success

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here